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Flexible Spending

There are several types of health insurance accounts available that can be used to help fund healthcare expenses. These include flexible spending accounts (FSA) and health savings accounts (HAS).

Flexible Spending Account

Health insurance flexible savings accounts or cafeteria plans are established by your employer and are intended to help reimburse employers for specific medical costs.

There is not legal limit on how much money can be contributed to an FSA thought a company may cap the limit at $2000 to $3000. Under the plan’s rules, the contribution amount is established each year during open enrollment. Thereafter, the employee may not change the amount or quit the plan unless there is a change to their family status.

Flexible spending accounts are a use-it-or-lose-it type of deal so any unspent funds in the account are forfeited at the end of each year. Congress has flirted with proposals to ease this rule by allowing up to $500 to be carried over each year but nothing has been enacted.